Oklahoma State Senate
Senator Cal Hobson
Senate District 16
Cleveland and McClain Counties

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For Immediate Release: March 1, 2006

         
          Sen. Cal Hobson     

Senate Offers HOPE for Families Struggling to Pay High Energy Bills

State Senators Wednesday unanimously approved legislation creating a permanent funding source to provide state funds to bolster the federal Low Income Home Energy Assistance Program (LIHEAP) administered by the Oklahoma Department of Human Services.

“Despite warmer than normal temperatures this winter, the rising cost of natural gas has already sparked a dramatic increase in home heating bills, leaving many Oklahoma families struggling to make ends meet,” said Senator Cal Hobson, author of the measure.

Market analysts don’t expect energy prices to substantially subside this year, next year or in the foreseeable future, the Lexington Democrat said.

“The HOPE Act will ensure that state funds are available so that low income Oklahomans won’t have to choose between buying groceries and keeping the heat on,” Hobson said.

Senate Bill 1367 creates the Helping Oklahomans Pay for Energy (HOPE) Act which will set aside an estimated $8 million a year that can be used to help low income Oklahomans pay their utility bills both in the winter and summer months.

The Senator said the same increases in natural gas prices that are causing home heating costs to rise are also swelling state coffers through increased gross production tax receipts.

As contained in Senate Bill 1367, the HOPE Act would dedicate 1 percent of state collections of the gross production tax on natural gas to a new fund that would be used to add state dollars to the federal LIHEAP program.

“High gas prices help the state’s bottom line but they are creating a hardship for working Oklahomans. It only makes sense to me that the state share the wealth with Oklahoma families who are struggling to make ends meet,” Hobson said.

The HOPE Act, he explained, would go into effect July 1 and wouldn’t impact the agreement between Governor Brad Henry and Legislative leaders to add state funds to the LIHEAP program this year. Senators approved Senate Bill 1269 in floor action Tuesday providing the $5.4 million supplemental to the Department of Human Services.

“I don’t believe we can count on the federal government in the future to provide increased funding for this important program. This legislation will make state money available to make sure no Oklahoma family is left out in the cold,” Hobson said.

For more information contact:
Senator Hobson's Office - (405) 521-5553